The power industry needs market structures that fairly value low-emission generation and the services provided by generation technologies.
FREMONT, CA: Nuclear energy has cut CO2 emissions by 66 Gt in the past 50 years since becoming a part of the electricity grid. Without nuclear power, CO2 emissions from the power industry in leading economies—including the United States and the European Union—would have increased by 20 percent over the previous 50 years. Nuclear power has recently experienced rapid growth in emerging markets and developing nations, contributing to a reduction in emissions of about 9 Gt to date.
Nuclear power is a significant low-emission electricity source, accounting for 10 percent of the world's electrical production. In those nations where it is accepted, it can cooperate with renewable energy sources to reduce emissions from the power industry and improve the security of the electricity supply as a dispatchable power source. It can also generate hydrogen and low-emission heat. It will take more work to bring nuclear power up to Net Zero Emissions by the 2050 Scenario. One of the most affordable low-emission electricity sources is the lifetime extension of existing nuclear power plants, but more action is required to capitalize on these prospects fully.
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Net zero aims have encouraged advancements in nuclear power technology, such as small modular reactors (SMRs) under 300 MW per reactor, down to 10 MW. SMRs promise to be less expensive, simpler, and quicker to construct than traditional big reactors. There are now more than 70 designs under development. SMRs might be manufactured in a factory and delivered to the final location, minimizing the need for funding and speeding up project deadlines. SMRs could play a significant role in addressing the increased flexibility needs in power generation as power systems decarbonize and the shares of solar and wind energy increase. They can also be utilized to generate heat and hydrogen.
Government support has significantly expanded over the last two years and now amounts to billions of dollars, 10 times more than it did just a few years ago. Support like this encourages private investment. Examples comprise:
Two reactors in the United States are on track to begin operations by 2030 and are anticipated to receive USD 3.2 billion in funding.
The Canadian government plans to deploy SMR through a roadmap and action plan by the decade's end.
Nuclear power has the potential to grow in areas where other technologies, such as those for producing hydrogen and extending district heating networks, make strides. This potential extends beyond just energy. By taking advantage of these markets, nuclear power can realize its promise in the energy transition.
Although most hydrogen produced today is produced by steam-reforming natural gas or gasifying coal, the Net Zero Scenario's desire for huge amounts of low-emission hydrogen opens up new prospects for nuclear power. There are many ways to achieve this, but combining nuclear reactors with electrolyzers is the most cutting-edge method. Applications that eliminate the need for electrolysis and produce hydrogen directly from nuclear energy are also being researched. Hydrogen and oxygen are separated from water using high-temperature thermochemical hydrogen synthesis, which uses heat from the nuclear reactor. Even the most advanced electrolysis models can only reach 30 percent efficiency, but these systems can reach above 40 percent, lowering the entire cost of hydrogen production.
Due to the requirement to replace fossil fuel-based heating, the Net Zero Scenario sees a considerable increase in the demand for low-emission heat in district heating systems. From USD 20 billion per year in the 2020s to above USD 30 billion per year in the 2030s, investments in low-emission heat sources have increased.